Market Report Middle East

GOPPAR Falls in MENA Despite RevPAR Growth

MENA Chain Hotels Market Review - July 2019
Sunset in Abu Dhabi - Photo by David Rodrigo on Unsplash
GOPPAR Falls in MENA Despite RevPAR Growth


Rising costs are eating into revenue gains at hotels in the Middle East and North Africa, according to data tracking the region from HotStats.

Hotels in MENA suffered a 2.2% year-on-year decrease in GOPPAR in July, an 11th consecutive month of decline.

At $38.79, GOPPAR was more than $27 below the year-to-date average, and a low for the year so far. 

The drop in profit came in the face of positive revenue growth, including a 1.2% YOY increase in RevPAR, as room occupancy grew by 2.3 percentage points.

Hotels in MENA also successfully recorded a 0.1% increase in TRevPAR in the month, which grew to $154.10 in spite of a decline in ancillary revenues, led by a 1.3% YOY decline in F&B revenue to $52.16 per available room. 

However, rising costs, which included a slight increase in payroll (up 0.1%) and overheads (up 2.2%), to a cumulative $105.13 per available room, conspired to dampen overall profitability.

Profit & Loss Key Performance Indicators – Middle East & North Africa (in USD)

KPI July 2019 v. July 2018
RevPAR +1.2% to $90.54
TRevPAR +0.1% to $154.10
Payroll +0.1% to $52.49
GOPPAR -2.2% to $38.79 

“Profit decline in MENA has now become a trend rather than a blip,” said Michael Grove, Managing Director, EMEA, at HotStats. “With average room rate showing no sign of negative year-over-year letup, hoteliers will have to find cost-cutting measures to obtain positive GOPPAR increases in the interim.”

Notably, Dubai, where hoteliers suffered a 48.4% YOY decline in profit per room as the market hit a summer low of $7.49 on a per-available-room basis. The impetus: an 8.3% drop in RevPAR, which fell to $81.35.

Despite a small room occupancy increase, achieved average room rate in the city plummeted by 10.3% YOY. 

In addition, cost savings in payroll and overheads were not enough to prevent profit conversion falling to just 4.8% of total revenue in the month month.

Profit & Loss Key Performance Indicators – Dubai (in USD)

KPI July 2019 v. July 2018
RevPAR -8.3% to $81.35
TRevPAR -7.3% to $156.03
Payroll -1.8% to $69.36
GOPPAR -48.4% to $7.49

In contrast, it was a relatively positive period for hotels in Doha, where performance appears to have stabilised over the last 12 months after a considerable decline following the economic embargo.  

This month, hoteliers in the Qatari capital recorded a 4.9% YOY increase in GOPPAR, due in part to growth across all revenue centres, and led by a 7.1% increase in RevPAR.

And though hotels in the city have struggled with falling rates, room occupancy levels have soared, demonstrated by the 5.4-percentage-point YOY increase this month.

Growing ancillary revenues also contributed to positive TRevPAR, which increased by 8.3% YOY.

Profit & Loss Key Performance Indicators – Doha (in USD)

KPI July 2019 v. July 2018
RevPAR +7.1% to $94.46
TRevPAR +8.3% to $246.76
Payroll +10.6% to $75.06 
GOPPAR +4.9% to $65.99 


HotStats provides two reporting tools to hoteliers:

Our unique profit and loss benchmarking service which enables monthly comparison of hotels’ performance against their competitors. It is distinguished by the fact that it provides in excess of 100 performance metric comparisons covering 70 areas of hotel revenue, cost, profit and statistics providing far deeper insight into the hotel operation than any other tool.

Our latest innovation in daily revenue intelligence, MORSE. Amongst its reporting are daily and highly granular market segmentation metrics as well as distribution channel and source of booking analysis. It takes daily market intelligence to a whole new level.

For more information contact:


+44 (0) 20 7892 2241

Logos, product and company names mentioned are the property of their respective owners.